In that case they should have no issues including the 6 month buy back clause.
No clause,no Percy.Simple as that.
Printable View
In addition, the Retirement Villages Code of Practice 2008 requires such liabilities to be repaid to a resident if their unit cannot be lived in due to damage to the unit, such as following an earthquake or fire, where the unit is not repaired / rebuilt and a resident's Occupational Right Agreement is terminated. This includes any of the up to 30% (typically) that might have accrued to the retirement village operator. However both parts, the original capital sum paid by the resident and the fixed charge that accrues to the village owner, are insurable.
Clearly this should not be an issue if the damage is minor but could be if the event of major damage and if the liabilities have not been insured. The same would apply to SUM others.
So OCA to join the NZX50 in may by the looks, good news.
I wont hold my breath as when ATM was added to indexes absolutely nothing happened haha. So there is enough free float to join the index?
They usually buy up well before the official inclusion is my understanding.
Index inclusion is not a done deal yet.
Well now it seams to me that if OCA is prepared to pay the estate interest after 6 months that is a sign of good will and generosity AND confidence.. I think that is very fair. Nobody I know will buy back property after 6 months! But to offer interest, well, that's great
The unit is owned by OCA.
They sold a "right to occupy".
OCA retain ownership.
It should therefore be OCA's problem, should they fail to resell a "right to occupy" within 6 months.
Paying interest just moves the goal posts onto the estate,which has no rights to sell the 'right to occupy',therefore there must be a time limit put in place .
This out come is not in OCA's clients best interest,which leaves OCA open to regulators,as per The Austalian Banks scandal.
Percy OK thanks. Why don't we approach Earl or Liz for an answer. I have every confidence that OCA is totally moral and honest. What has been the OCA deal with ----for example---- care suites up to now? I didn't have a clue but I'll tell you that when my loved mother passed away there was an occupier/buyer for her suite in less than 5 days (that, after all, is life) so the concept of 6 months didn't enter my head.
I need to know the existing situation and the proposed change/s spelt out in black and white then I can understand.
M. thanks.
A good article about retirement villages. It appears Ryman and Arvida also pay interest after 6 months, and Metlifecare pays interest after 9 months.
https://i.stuff.co.nz/business/11204...re-the-catches
Thanks for posting the link.
Certainly appears to me the retirement village sector is ripe for an Australian Banking type Royal Commission.
They must change, and at all times act in their clients best interest,rather than their own.
If they do not do it themselves, the regulators will make them.
Arvida policy
30 % is right at the very top end...hardly a gold standard.Quote:
Deferred management fee of 7.5 per cent a year, capped at 30 per cent. Weekly fees are fixed for life and stop as soon as resident moves out. Interest paid to resident if unit takes longer than six months to sell.
Speaking of slipping halo's, I thought RYM guaranteed to pay you out if they couldn't resell your unit within 6 months ? Can anyone else please confirm ?
What happened to that promise and why have they apparently changed it ?